Mohegan Sun Hoping New Hotel Will Help Increase Gambling Profits
The Mohegan Indian tribe had big plans of expansion in 2007, with the idea being to add a new hotel that could bring in more gamblers. That plan stalled thanks to the economic recession of 2008, and the tribe has been waiting for the right time to move along with the hotel.
That time appears to have finally come. On Friday, the Mohegan's announced that they would be adding a 300-500 room hotel in the coming years. Construction on the hotel is expected to begin by the end of the year, leaving open the possibility that the hotel could be operational in 2012.
The Mohegan Sun is one of two gaming establishments in Connecticut, the other being Foxwoods. The latter had completed a hotel expansion just before the recession, although the hotel put Foxwoods nearly $2 billion in debt. The additional hotel space is starting to pay off with gamblers beginning to head back to the casinos after the recession.
The current Mohegan hotel is nearly running at capacity, and officials believe that a new hotel is needed to ensure that gamblers are not turned away in the future. With the additional space, Mohegan Sun will be able to attract bigger business conferences, in turn, bringing thousands of additional gamblers to Connecticut.
The timing could not be better for the state, which was one of the first Northeastern states to offer casinos. In recent years, however, New York, Maryland, Maine, and Delaware have all increased their presence in the gaming industry. Pennsylvania has made the biggest strides, with analysts expecting Pennsylvania to become the top gaming destination on the East Coast by the end of 2012.
The new hotel for the Mohegan Sun will not be built by the Indian tribe. Instead, an outside developer has been brought in to construct the facility. While Mohegan Sun is adding the new hotel, Foxwoods is also increasing their presence, with renovation projects planned that could once again make Connecticut a viable option for gamblers in the coming years.
May 29, 2011
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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